The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 91

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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Regression of a Fallen Chaebol’s Third Generation – Episode 91
“How was Lucas?”
To my question, Jung Tae-sung, who had greeted Lucas Jansen upon his entry from America and returned, nodded his head.
“He said he would buy just what he needed at the shopping mall and head straight to Ulsan, so I called a secretary from SJ Security and had her take him there.”
I laughed softly. Even at that first meeting in America, he had been conducting research. Despite relocating to another country, he went straight to looking for a research facility.
“Please make sure SJ Security has no inconveniences.”
“Yes, and I’ve already spoken with Choi Sung-hun about it. It seems we’ll need a team to help new personnel adapt if Lucas brings people over from America, so we’ve established a new secretarial division.”
I nodded. Choi Sung-hun seemed to be finding and doing his part well.
“As I mentioned, he’ll need to stay in Ulsan until the Ochang Complex is completed, so please look after him, Director Jung.”
“Yes, understood——.”
“I’m here.”
While I was still in conversation with Jung Tae-sung, the office door opened and Danny entered.
“How did it go?”
“Forty-five million dollars.”
Danny flopped onto the sofa and spoke.
“That’s for all seven vessels combined. About 6.4 million per ship.”
“What’s Choi Dong-su’s impression?”
“He’s in a hurry. Pushed documents at me the moment I sat down. When I asked for a cup of coffee, he looked like it pained him.”
It was as expected. Seonjin Trading Company believed that if the mounting monthly deficits continued, not just the shipping division but the entire company itself would falter.
“The materials were well-organized though. Vessel age, tonnage, operating costs, deficit size. Dense as a catalog.”
“He’s good with numbers.”
“That’s probably why emotional appeals won’t work. Put differently, he’s the type who’d get annoyed by indirect language.”
I nodded. Danny certainly had a good eye for assessing people.
“But something’s odd. Usually when a seller is desperate, they throw multiple conditions at you. This guy just drops a price. It feels like he’s got a hard floor set.”
That’s Choi Dong-su for you. The kind of man who shapes everything around a number he’s decided on. It was the same in his previous life.
“But honestly——”
Danny crossed his legs and continued.
“I don’t think we need to buy right now. Container rates are at 500 dollars per TEU. Our cost is 800. The more we operate, the more losses we rack up. There’s no reason to buy a losing ship for 6.4 million per vessel. If the market drops further, we could get them below 5 million.”
“Are you saying we should hold off?”
“Time is on our side.”
It was pure investor logic, and not wrong. 6.4 million dollars per vessel. When Seonjin Trading first brought in used container ships from Western Shipping, they paid about 15 billion won per ship.
That was roughly 12.5 million dollars. Double what they’re asking now.
When Camco Shipping Fund bought thirty-three vessels from Hanmin Shipping, the price was about 14 billion per ship, or around 11 million dollars. But that was government-backed funding, so it doesn’t really count.
In the private market, no one’s buying container ships right now. Consumer demand in Europe and America is dead. There’s no need for ships to carry finished goods when no one’s buying. The fact that someone’s stepped up to purchase is opportunity itself.
And the market price was bound to drop further.
“If we hold off, the negotiating table closes.”
Danny looked at me.
“Seonjin Trading has already pushed their speed to the maximum. Just look at the price they’re asking and you’ve got your answer. If we drag this out? They’ll cut the price further and look for another buyer.”
“Is there another buyer out there? The market’s in this state.”
“Maybe not, but they can pretend there is. Then we get dragged along.”
Danny thought for a moment, then nodded.
“Understood. So what’s the move?”
“Don’t touch the price.”
“You’re not going to negotiate it down?”
“No. We accept the 45 million as is.”
Danny paused briefly.
“It’s the price they named in a desperate situation. If we try to cut it, they’ll think we’re taking advantage of their circumstances.”
Of course, that was negotiation basics, but it required reading the timing and the other party.
“Instead, we move to reduce our risk. We change the terms. In a way that favors us.”
“What kind of terms?”
“Deposit 30%. 13.5 million upfront. The rest paid in installments over six months after delivery.”
“Due diligence?”
“We need it, of course. Vessel condition inspection before delivery. Delivery deadline is 60 days from contract.”
Danny tapped the table with his finger, organizing his thoughts.
“Accept the price. Only 30% deposit. Remaining balance split over half a year. And include due diligence.”
“Right.”
“By not cutting the price, you save face for them. But you delay actual outflow.”
“Exactly.”
“But the due diligence period takes time. We need to hire an external consulting firm too. We don’t have in-house experts right now. Two to three weeks could shift the market. Good for us, but they’ll be nervous.”
“That’s why the delivery deadline is 60 days. Two months should cover it, due diligence included.”
“Ah, so that’s why 60 days. Not bad.”
Danny rested his chin on his palm.
“But——”
“Yes.”
“Will the other side accept this? Even desperate, this seems like you’re really squeezing them.”
It was a fair point. Seonjin Trading is desperate for cash. Giving them only 30% upfront and the rest six months later isn’t the answer for them. They’re selling ships to plug a 5-billion-won-a-month deficit. If money comes in over six months, it defeats the purpose.
“Then we do this.”
I looked at Danny as I spoke, and his eyes began to shift with each passing moment.

* * *
“We’ll begin.”
Meanwhile, in the Seonjin Trading CEO Office. Six operational staff from the Shipping Division were seated at the conference table as Choi Dong-su began conducting the meeting.
“Two items: final verification of due diligence materials for the seven vessels up for sale, and the current status of acquisition contacts.”
The employees focused at Choi Dong-su’s words.
“The due diligence materials are finalized. We’ve organized vessel age, tonnage, operating costs, even maintenance history. On the acquisition side, there’s one party we’re in contact with.”
At Choi Dong-su’s mention of a potential buyer, the Management Finance Team Lead asked a question.
“May I ask who the potential buyer is?”
“An investment firm called DK Capital. It’s new, but it invests in distressed assets.”
As Choi Dong-su explained, the Operations Team Lead raised his hand.
“I’d like to say something.”
Choi Dong-su nodded. The Operations Team had been the most opposed to this sale within the Shipping Division.
“I think you should look at freight rate trends.”
The Operations Team Lead rotated his laptop and displayed a chart.
“It’s not just bulk rates rising. Container spot rates have also bottomed out and are rebounding. On the Europe route, they’ve climbed from 480 to 540 per TEU.”
The Management Finance Team Lead picked up immediately. Since the management finance side always worried about money, they’d been leading this sale within the division.
“Forget the chart. Look at our actual vessel utilization. How many of the seven ships are operating right now?”
The Operations Team Lead fell silent. It was brief.
“Two ships.”
“Two. What are the other five doing? Even with rising rates, we’re not getting long-term chartering contracts. European consumption isn’t recovering. Who’s going to charter containers?”
“Spot rates are rising, and I don’t understand what you mean by that. It means demand is returning, doesn’t it?”
“Even if spot rates rise, we’re not locking in long-term charters. Can we cover maintenance on fifteen ships with a few spot transactions?”
The Operations Team Lead’s jaw tightened, but he still didn’t back down.
“Look at the Baltic Dry Index. It’s climbed from 600 to 4,100. That’s a number too.”
“That’s bulk. Our ships are container vessels.”
“Containers follow. When raw materials move, finished goods move. There’s just a lag.”
“But no one knows if that lag is six months or a year. Who covers the deficits in the meantime?”
Choi Dong-su watched both sides quietly. He didn’t think this was the time to intervene. The Operations Team Lead slammed his papers down.
“We’re selling at the bottom right now. Just wait six more months——”
“Six months is how much?”
The Management Finance Team Lead cut him off.
“The deficit isn’t 5 billion a month. When ships sit idle, port charges, insurance, crew maintenance still go out. Operating losses plus lay-up costs come to over 6 billion a month. Six months is 360 billion. Where does that money come from?”
The Operations Team Lead couldn’t just listen anymore.
“We need the ships so that when rates rise, we’re operating them. Once we sell, it’s done. We can’t buy them back.”
The Management Finance Team Lead ran out of words.
“How many years did we operate these ships? We’re throwing them away because of one bad market?”
No one answered. The Management Finance Team Lead was from the same division. Since it wasn’t entirely wrong, he couldn’t push harder.
This wasn’t just a logical argument. Selling the ships would erase the reason for the Shipping Division to exist. It was essentially saying the department would dissolve—and that wasn’t a market logic issue, it was a survival question.
Choi Dong-su watched the whole exchange and, sensing he’d heard enough, slowly opened his mouth.
“Let me summarize.”
The conference room fell quiet.
“I understand freight rates are rebounding. But utilization is what matters. Only two of seven vessels are operating, and five are sitting idle. That means the market doesn’t need our ships yet.”
As the Operations Team Lead tried to speak again, Choi Dong-su raised his hand to stop him.
“The sale is confirmed. It’s an upper-level decision. We follow it.”
The atmosphere in the conference room shifted. Now everyone knew there was no point in saying more on this matter.
“Final deadline for due diligence materials is this Friday. That’s all.”
Choi Dong-su ended the meeting without waiting for counterargument. The team members left with hardened expressions.
“Internal alignment is done, but——”
They’d shut down dissent in-house, but now the outside was the problem. The moment the other party realized there was only one potential buyer being contacted, the advantage would shift to them.
“I wish things could just move smoothly like this. How much longer do we have to wait……”
Buzz——
Then his phone in his pocket vibrated. Choi Dong-su confirmed the screen and pressed the call button.
“This is Choi Dong-su.”
-Representative, Danny Kim here. Let’s meet tomorrow. I’ll bring my operational team.

* * *
“Forty-five million dollars. We’ll accept it.”
The next day, in the Seonjin Trading Headquarters Conference Room. With operational staff from both sides present, Danny Kim spoke first.
“…….”
At his words accepting the proposed price, surprise filled the faces of Choi Dong-su and the Seonjin Trading team.
They’d expected him to negotiate down. The man who’d only taken documents at the first meeting had accepted the price as is.
A sense of relief settled in one corner of their minds.
“Thank you for accepting.”
Choi Dong-su tried not to show any further emotion, but his words came faster.
“Then we can proceed directly with the contract preparation——”
“However, there are a few conditions.”
At Danny’s words, Choi Dong-su’s hand stopped.
“Please state them.”
“The deposit is 30%. We’d like to proceed with 13.5 million paid upfront.”
Since it was common in the industry not to receive full payment immediately, they hadn’t expected that. But 30% was low.
The remaining 70%. 31.5 million dollars. When that came in was the question.
“Then may I ask when you’d settle the remaining balance?”
“We’ll pay it in installments over six months following vessel delivery.”
Choi Dong-su’s brow furrowed.
Six months…… and in installments? They were selling ships to plug a monthly deficit exceeding 5 billion won. If the money came over half a year, it couldn’t solve their immediate cash crisis.
“Is DK’s funding perhaps——”
“No, there’s no need to worry about that.”
As Danny Kim raised his hand, the DK team member beside him handed over documents.
“This is our account balance certificate on deposit at Daesan Bank.”
Choi Dong-su took the papers. 130 billion won was on deposit. If the counterparty was indeed a new investment firm without adequate funds, it could become a major risk later.
It was better to verify.
“Feel free to confirm the authenticity of these documents with the bank.”
Choi Dong-su nodded and looked at Danny Kim.
“Installments are difficult. Let’s proceed with full payment at delivery.”
“Paying the full amount without due diligence poses too much risk for us.”
Danny’s tone was soft but unbending.
“You mentioned due diligence? Were the materials we provided insufficient?”
“Not at all. They were excellent. But we need to verify on our end. We’ll need to include vessel condition inspection before delivery as a term. Delivery deadline is 60 days from contract execution.”
One more condition had come up. Choi Dong-su set his pen down on the papers. There’d been a reason for not cutting the price. Accept the price but tighten the terms.
“Are you saying that if defects appear in due diligence, we’ll renegotiate the price?”
“Due diligence is a verification process. We’re only talking about adjusting if there are defects not mentioned in the materials. If the data you provided is accurate, there shouldn’t be any issues.”
“How long would due diligence take——”
“Two to three weeks. We need to select an external inspection company.”
Two to three weeks—the market could shift in that time, favoring the buyer. Choi Dong-su couldn’t help but make that calculation.
“If there’s no price adjustment due to market fluctuations during due diligence, I can accept the due diligence condition.”
“The price is locked at 45 million dollars as we agreed today. Due diligence only covers vessel condition.”
At those words, Choi Dong-su could only nod. Locking the price wasn’t bad for the seller either.
Price accepted. But the deposit was 30%, with the remaining balance coming over six months. Due diligence added, and the delivery deadline pushed back to 60 days—in purely numerical terms, the buyer held an overwhelming advantage.
“I’ll be frank with you.”
Choi Dong-su opened his mouth.
“Thank you for accepting the price. But under these terms, it’s difficult for us to accept. Taking 30% upfront and waiting another six months for the rest doesn’t work for our cash flow.”
Danny nodded.
The other party’s reaction came exactly as Kang Seon-woo had predicted. Then there was one more condition he needed to propose here.
“I understand your position. That’s why I’d like to make another proposal.”
Danny looked at Choi Dong-su as he spoke.
“How about this: we acquire the vessels, and then lease them back to Seonjin Trading.”
At Danny’s proposal, the eyes of Choi Dong-su and the other Seonjin Trading personnel widened.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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